Intermunicipal Insurance Agreements

V.S.A. tit. 24, ch. 121, subch. 6

in effect

24 V.S.A. § 4941 Definitions

4941. Definitions As used in this subchapter: (1) “Association” shall mean an association, compact, or corporation, any of which shall be organized not for profit, and formed for the purpose of entering into intermunicipal insurance agreements under this subchapter. (2) “Municipality” shall mean “municipality” as defined in section 4801 of this title, but shall also include the following: (A) all governmental entities defined in 1 V.S.A. § 126 and in subdivision 1751(1) of this title; (B) all bodies corporate and politic created and existing under any special act of the General Assembly; (C) all bodies corporate and politic created and existing under an interstate compact; (D) all bodies corporate and politic created under intermunicipal agreements entered into and approved as provided in subchapter 3 of chapter 121 of this title; (E) all supervisory unions created under 16 V.S.A. chapter 7, subchapter 1; (F) all incorporated school districts; (G) all entities providing educational services and eligible for State aid under 16 V.S.A. § 3447; (H) all consolidated water and sewer districts; (I) all ambulance districts created under subchapter 1 of chapter 71 of this title; (J) all regional mass transportation authorities created under chapter 127 of this title; (K) all local housing authorities created under section 4003 of this title; (L) all conservation commissions created under section 4501 of this title; (M) all special assessment or tax increment financing districts created under subchapter 5 of chapter 53 of this title; (N) all counties established by chapter 1 of this title; (O) all regional planning commissions established under chapter 117 of this title; (P) all instrumentalities and agencies of the foregoing. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.

24 V.S.A. § 4942 Contents of agreement

4942. Contents of agreement Two or more municipalities, by resolution of their respective legislative bodies or boards, may establish and enter into agreements for obtaining or effecting insurance by self-insurance, for obtaining or effecting insurance from any insurer authorized to transact business in this State as an admitted or surplus lines carrier, or for obtaining and effecting insurance secured in accordance with any other method provided by law, or by combination of the provisions of this section for obtaining and effecting insurance. Agreements made pursuant to this section may provide for pooling of self-insurance reserves, risks, claims and losses, and of administrative services and expenses associated with the same, among municipalities. To accomplish the purposes of this subchapter, two or more municipalities may form an association under the laws of this State to develop and administer an intermunicipal risk management program, having as its purposes reducing the risk of its members; safety engineering; distributing, sharing, and pooling risks; acquiring insurance, excess loss insurance, or reinsurance; and processing, paying, and defending claims against the members of such association. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.

24 V.S.A. § 4943 Contributions

4943. Contributions Any contributions made to such association for the purpose of distributing, sharing, or pooling risks shall be made on an actuarially sound basis, and any such association shall have its books, records, and financial affairs audited annually by a certified public accountant, copies of which shall be provided to each municipal member and the Commissioner of Financial Regulation. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).

24 V.S.A. § 4944 Approval of agreements

4944. Approval of agreements (a) No association organized under this subchapter shall receive funds from any municipality for the purpose of distributing, sharing, or pooling any risk until a plan for the operation of the association together with all contracts, agreements, and any other documents underlying or implementing the plan, and all amendments thereto, have been approved by the Commissioner of Financial Regulation. (b) The Commissioner shall adopt rules to assist in the formation of such associations and to expedite approval of any plan of operation. The Commissioner shall also adopt rules relating to the administration and operation of such associations in order to provide for the fiscal integrity of agreements entered into under section 4942 of this title and to provide that trade, market, and claim practices engaged in by such associations are equitable, fair, and consistent. In adopting such rules, the Commissioner shall recognize that such associations are undertaking an essential governmental function and that they shall not be considered insurance companies nor insurers under the laws of this State. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).

24 V.S.A. § 4945 Inapplicability of other laws

4945. Inapplicability of other laws The provisions of section 4863 of this title shall not apply to the formation of an association organized under this subchapter, nor to the participation therein by a municipality. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.

24 V.S.A. § 4946 Declaration of policy

4946. Declaration of policy The General Assembly hereby finds and declares that the implementation of this subchapter by any municipality and the activity of any association organized pursuant to this subchapter shall constitute essential governmental functions. Participation by a municipality in an agreement or association established pursuant to this subchapter shall not create joint and several liability as a result of any act or omission of any other municipality or association, nor shall such participation constitute a waiver of sovereign immunity under 29 V.S.A. § 1403. Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.

24 V.S.A. § 4947 Health benefit plans offered to entities providing educational services

4947. Health benefit plans offered to entities providing educational services (a) As used in this section: (1) “Health benefit association” means an association that offers one or more health benefit plans to school employers for coverage of their school employees. (2) “School employee” shall have the same meaning as in 16 V.S.A. § 2101. (3) “School employer” shall have the same meaning as in 16 V.S.A. § 2101. (b) A health benefit association shall offer the same plan or plans to all school employers. (c) A health benefit association shall solicit the input of the Commission on Public School Employee Health Benefits established in 16 V.S.A. § 2102 regarding the design of the health benefit plan or plans to be offered to school employers for coverage of their school employees. (d) The governing board of a health benefit association shall be composed of the following six members: (1) three members appointed by the organization representing the majority of the public school boards in this State, who shall not be employees of the organization; and (2) three members appointed by the labor organization representing the greatest number of public school employees in the State, who shall not be employees of the organization. (e) A health benefit association shall make all health benefit plans that it offers available to approved or recognized independent schools operating in Vermont. Participation shall not create joint and several liability as a result of any act or omission of any other school, municipality, or association. Schools that participate under this section shall be provided with copies of the annual audit. The provisions of 16 V.S.A. § 166 shall apply for purposes of determining whether a school qualifies as an “approved or recognized independent school.” Added 1997, No. 138 (Adj. Sess.), § 20a, eff. April 27, 1998; amended 2018, No. 11 (Sp. Sess.), § H.25.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/24/121Fetched: 10/21/2026